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Bonds exchangeable for Richter shares 4.5 times oversubscribed

Bonds exchangeable for shares of Hungarian drug maker Richter issued by Hungary's national asset management company MNV were oversubscribed four and a half times, Finance Minister Péter Oszkó said.

The issue will boost confidence in Hungary and confirm that the country's financial policy is headed in the right direction.

MNV said on Wednesday it would issue the bonds to replace exchangeable bonds issued five years ago expiring around the end of September.

The more than €833 million in proceeds from the sale of the bonds will more than cover the €707 million of maturing bonus, said MNV CEO Miklós Kamarás.

Answering a question, Kamarás said the difference between the proceeds from the two sales would go to the treasury. MNV expects to be a net budget contributor this year, he added.

The details of the issue as well as the participants in the subscription will be announced after a few days, Kamarás said. (MTI – Econews)